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HomeMy WebLinkAboutordinance.council.034-82 PEOPLE'S ORDINANCE NO. ~e,';~ o 1e AN ORDINANCE TO CONTRACT AN INDEBTEDNESS ON BEF~%LP OP ~- CIT~oOP ASPEN, COLORADO, AND UPON T~E CREDIT T~EREOF,. BY ISSUING TEE GENERAL OBLIGATION BONDS OF TEE CITY IN PRINCIPAL AMOUI%"~ OF $6,300,000 FOR. T~E P~$E OF IMPROVING AND ~.XTENDING TI~E CITY'S WA~ER SYSTEM, INCLUDING T~E ACQUI- SITION OF WATER RIGHTS; PRESCRIBING T~E PORM OF T~E BONDS; PROVIDING FOR TEE L~V*Y OF TAXES TO PAY T~E SAME; PROVTDING · OT~ER DETAILS CONCERNING T~ BONDS; RATIFYING ALL ACTION ~RETOFORE TAKEN IN C05~NECTION ~a~a~'WIT~; AND DECLARING AN F.~4~.RGENCY. WR~REAS, the City of Aspen (the "City"), in ~he County of Pitkin and State of Colorado, is a municipal corporation, duly orga- nized and existing as a home-rule city under Article XX of the Constitution of the State of Colorado; and W~EREAS, at the general municipal election held on May 5, I981, the question of issuing the City's general obligation bonds in a principal 'amount not exceeding $9,000,000 forthe p~rpose of improv- ing and extending the City's water system, including the acquisition of water rights (the "Project"), was submitted to the registered qualified electors (the Council' of the City having determined that the submission of said question was desirable, although not required by the Charter of the City), and said question was approved by a majority of the registered qualified electors of the City vot.ing thereon; and W~EREA$, the Council of the City (the "Council") has here- tofore issued a portion of such bonds as its "City of Aspen, Colorado, General Obligation Water Bonds, SerieB July l, 1981," in the aggregate principal amount of $2,700,000, and has now determined to issue the balance of such bonds; and ~q~EREAS, the Council has determined to award the purchase of such bonds to Kirchner Moore ~ .Company, Denver,.Colorado,. (the "Purchaser") in accordance with the terms and conditions of its pro- posal dated July 14, 1982, at a price of 97.8% of the principal amount thereof, plus accrued interest to the date of their delivery. NOW, THEREFORE, BE IT ORDAINED BY T~E CITY COUNCIL OF T~E CITY OF ASPEN, .COLORADO: Section 1. All action heretofore taken (not inconsistent with the provisions of this ordinance)-by' the City or the officers of the City directed toward the Project or the issuance of its bonds for that purpose be, and the same is hereby, ratified, approved and confirmed. Section 2. For the purpose of providing funds to defray the cost of the Project, the City shall issue its negotiable, coupon ~City of Aspen, Colorado, General Obligatipn Water Bonds, Series August 1., 1982" (the "Bonds"), in the aggregate principal amount of $6,3000000, consisting of 1260 bonds numbered consecutively in regu- lar numerical order from i to 1260, inclusive, ~ated August 1, 1982, ~n the denomination of $5,000 each, bearing interest as set forth below, payable semiannually on March I and September i in each year, gom~encing March 1, 1982, as evidenced by one set of coupons attached to the Bonds. Both principal and interest will be ~ayable in lawful money of the United State of America, without deduction for exchange or collection charges, at the office of the City Treasurer, in As~en, Colorado (the 'Paying Agent"), and the Bonds will be numbered and mature serially in regular numerical order on September I in each of the following years and amounts: Bond Numbers Amounts Interest Rate Years 1 - 5 $25~000 8.50% 1983 6 - 10 25 000 9.00% 1984 11 - 15 25.000 9.30% 1985 16 - 20 25 000 9.60% 1986 21 - 25 25,000 9.90% 1987 26 - 30 25 000 10.20% 1988 31 - 87 285.000 -10.50% 1989 88 - 145 290 000 10.75% 1990 146 - 216 355~000 11.00% 1991 217 - 303 435 000 11.25% 1992 304 - 387 420.000 11.50% 1993 388 - 570 915 000 11.75% 1994 57! - 775 1,025,000 I2.00% 1995 776 - 1004 1,145 ~000 12.125% 1996 1005 - 1260 1,280 000 12.25% 1997 If any Bond shall not be ~aid u~on presentation at maturity, interest shall continue until paid at the coupon rate designated in the Bond. Section 3. Bonds maturing on or before September l, 1990, shall not be subject to redemption prior to their respective maturity dates. Bonds maturing on September 1, 1991, and thereafter shall be subject to redemption at the option of the City on September 1, 1990, and on any interest payment date thereafter, in whole or in ~art in inverse numerical order, at a price equal to the principal amount thereof, accrued interest to the redemption date and a premium of 1% of the principal amount of each Bon~ so redeemed. Notice of redemp- tion shall be given by publication of such notice at least once, not less than 30 days prior to the redemption ~ate, in a newspaper cus- tomarily used by 'the City for legal notices, and~a copy of such notice shall be sent by certified, first-class pestage prepaid mail, at least 30 days prior to the ~edemption date, to the Purchaser. Such notice shall s~ecify the number or numbers of the Bonds to be so -3- redeemed (if less than all are to be redeemed) and the date fixed for redemption; and shall further state that on such redemption date there will become and will be due and payable ~pon each Bond dso to be redeemed.at the office of the Paying Agent, the principal amount thereof and accrued interest to the redemption date, together with ~he stated premium, and that from and .after such date interest will cease to accrue. Notice having been given in the manner hereinabove provided, the Bond or Bonds so Called for redemption shall become due and payable on the redemption date. so designated; and upon presenta- tion at said office, together with all appurtenant coupons maturing s~bsequent to the redemption date, the City will pay the Bond or Bonds so called for redemption. Section 4. The Bonds and the coupons relating thereto shall be fully negotiable and shall have all the qualities of nego- tiable paper, and the holder or holders theremf shall possess all rights enjoyed by the holders of negotiable instruments under the provisions of the Uniform Commercial Code. Section 5. The Bonds shall be executed in the name of the City with the facsimile signature of the Mayor, shall be sealed with a facsimile of the seal of the City, attested by the manual signature of the City Clerk, and shall be countersigned with the facsimile sig- nature of the City Treasurer. The interest coupons attached to the Bonds shall be executed with %he facsimile signature of the City Treasurer. The Bonds and the coupons bearing the manual or facsimile signatures of the officers in office at the time of the signing thereof shall be the valid and binding obligations of the City, not- withstanding that before the delivery thereof and payment therefor any or all of the persons whose manual or facsimile signatures appear thereupon shall have ceased to fill their respective offices. Section 6. The Bonds and the coupons relating thereto shall be in substantially the following form with such omissions, insertions, endorsements and variations as to any recitals of fact or other provisions as may be required by the circumstances, or as may be required or permitted by this ordinance, or as may be consistent with this ordinance and necessary or appropriate to conform to the rules and requirements of any governmental authority or any usage or requirement of law with respect thereto: (Form of Bond) UNITED STATES OF AMERICA ~ STATE OF'COLORADO COUNTY OF PITKIN CITY OF ASFEN GENERAL OBLIGATION WATER BOND AUGUST 1, 1982 NO. $5,000 The City of Aspen (herein the 'City"), in the County of Pitkin and State of Colorado,, for value received, hereby acknowl- edges itself indebted and hereby promises to pay to the bearer hereof the sum of FIVE THOUSAND DOLLARS on September 1, 19__, upon presentation and surrender of this bond, with interest thereon at the rate of percent (. %) per annum, payable semiannually on }~rch 1 and September i in each year, commencing March 1, 1983, upon presentation and surrender of the annexed coupons as they s~verally become due, both principal and interest being payable in lawful money of the United States of America, without deduction for exchange or:collection charges, at the office of the City Treasurer in Aspen, Colorado. If this bond shall not be paid upon presentation at maturity, interest shall continue until paid at the coupon rate herein designated. Bonds maturing on or bef.ore September 1, 1990, shall not be subject to redemption prior to their respective maturity dates. Bonds maturing on September 1, 1991, and thereafter shall be subject to redemption at the option of the City'on September 1,' 1990, and on any interest payment date thereafter, in whole or in park in inverse numerical order, at a price equal to the principal amount thereof, accrued interest to the redemptiop date and a premium of 1% of the principal amount of each bond so redeemed. RedemptiOn shall be made upon not less than 30 days' prior notice by publication, at least once, in a newspaper customarily used by the City for legal notice~ in the manner and upon-the conditions provided in the ordinance authorizing the issuance of this bond.' This bond is issued by the City Councll of the City for the purpose of improving and extending 'the city,s water system, including the acquisition of water rights, under the authority of and in full conformity with the Constitution of the State of Colorado and the Charter of the City, and pursuant to an ordinance of the City duly adopted, published and made a law of the City prior to the issuance of this bond. -5- It is hereby certified and recited that all the require- ments of law have been fully complied with by the appropriate City officers in the issuance of this bond, that the total deb~ of the City, including that of this bond, does not exceed any limit of indebtedness prescribed by the Charter and ordinances of the City or by the Constitution or laws of the State of Colorado; and that provi- sion has been made for the levy and collection of annual taxes on all of the taxable property in the City sufficient to pay the interest on and the principal of this bond when the same become due. The full faith and credit of the City are hereby pledged for the punctual payment of the principal of and the interest on this bond. IN TESTIMONY WHEREOF, the City Council of the City has caused this bond to be executed with the facsimile signature of the Mayor, sealed with a facsimile of' the seal of ~che City, attested by the manual signature of the City Clerk, and to be countersigned with the facsimile signature of the Director of Finance, ex officio City · Treasurer, and has caused the interest coupons here attached to be executed with the facsimile signature of the Director of Finance, ex officio City Treasurer, all as of August 1, 1982. (Pac~mi~e Signature) Mayor (FACSIMILE SEAL) Attest:. (Manual Signature) City Clerk Countersigned~ (Facsimile Signature) Director of Finance, ex officio City Treasurer (End of Form of Bond) (Fo=m of Coupon) Coupon No. ' $ On (March 1) (September i) 19__, unless the bond to which this coupon is attached has been duly called for prior redemption on an earlier date and payment duly prsvided therefor, the City of Aspen, in the County of Pitkin and State of Colorado, will pay to the bearer hereof in lawful money of the United States of America, at the office of the City Treasurer, in Aspen, Colorado, the amount herein stated, being interest then due on its Citlr of Aspen, Colorado, General Olbigation Water Bond, Series August 1, 1982, and bearing Bond No. (Facsimile Si _~natur ~) (Director of Finance, ex officio City Treasurer (End of Form of Coupon) -7- Section 7. When the Bonds have been duly executed, the City Treasurer shall deliver them, at one time or from time to time, 'to the Purchaser, on receipt of the agreed purchase price. ~he funds raised t%ereby shall be applied solely to the purpose aforesaid and for no other purpose whatsoever, but the Purchaser in no manner sha~l be responsible for the application or disposal by the City or any of its officers of any of the funds derived from the sale of the Bonds. Section 8. If necessary, the interest falling due on the BoBds on March 1, 1983, shall be paid out of the general revenues of the City or out of any funds available for that purpose, and for the purpose of reimbursing such general revenues or such fund or funds and for the purpose of providing the necessary funds to meet the principal and interest thereafter accruing, as the same become due, there shall be levied on all the taxable property in the City, in addition to all other taxes, direct_ annual taxes'sufficient in amount to pay such interest and principal promptly as the same become due. Such taxes when collected shall be deposited in a special fund to be kept separate and apart from other accounts and to be known as the "City of-Aspen, Colorado, General Obligation Water Bonds, Series August 1, 1982, Bond Fund," such fund to be applied solely for the p~rpose of the payment of the interest on and the principal of the Bonds, respectively, and for no other purpose wha=ever until the .indebtedness so contracted under this ordinance, both principal and interest, shall have been fully paid, satisfied and discharged. Nothing herein shall be so'construed as to Prevent the City from applying the net revenues of the City's water system or any other funds available for that purpose to the payment of such iterest or principal; and upon such payments, the le~y or levies herein provided may thereupon to that extent be diminished. The sums produced kS' the levies hereinabove provided to meet the interest on the Bonds and to discharge the principal thereof when due are hereby applied for that purpose, and such amounts for each year shall be included in the annual budget resolutions and the appropriation ordinances to be adopted and passed by the Councit in each year. Section 9. The City hereby covenants for the benefit of each holder of the Bonds that proceeds of the Bonds (and amounts treated as proceeds of the Bonds for federal income tax purposes) shall not be invested in such manner as to result in the loss of exemption from federal income taxation of interest' on the Bonds. Section 10. It shall be the duty of the Council,-annual- ly, at the time and in the manner' provided by law for levying other City taxes, if such action shall be necessary to .effectuate the pro- visions of this ordinance, to ratify and carry out the provisions hereof with reference to the levying and collection of taxes; and the Council shall require the officers of and ~for the City to levy, extend and collect such taxes in the manner provided by. law for the purpose of creating a fund for the payment of the princ~ipal of the Bonds and interest thereon. Such taxes, When collected, shall be kept for and applied only to the payment of t~he interest and princi- pal of the Bonds as hereinabove specified. Section 11. The officers of the City be, and they hereby are, authorized and directed to take all action necessary or appro- priate to effectuate the provisions of this ordinance,, including, without limiting the generality of the foregoing, the acquisition of private insurance for the payment of principal of and interest on the Bonds, the printing of the Bonds, including the printing thereon of the opinion of bond counsel and of a certificate of insurance if so required, and the execution of such certificates as may be required by the Purchaser, including without limitation certificates relating to the signing of the Bonds, the tenure and iffentity of the mun/cipal officials, the delivery of the Bonds and receipt of the purchase price therefor, the tax exempt status of the Bonds, and the absence of pending or threatened litigation, if in accordance with the facts, affecting the validity thereof. Section 12. After any of the Bonds are issued, this ordi- nance shall constitute a' contract between the City and the holder or holders of the Bonds, and shall be and remain irrepeatable and unal- terable until the Bonds and the interest accuring thereon shall have been fully paid, cancelled, and discharged. Section 13. If any section, paragraph, clause or provi- sion of this ordinance shall be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall 'in no manner affect any other provision of this ordinance. Section 14. All ordinances, resolutions, bylaws and regu- lations of the City in conflict with this ordinance are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any ordinance,, resol'ution, bylaw, or resolution, or part thereof, heretofore repealed or to abrogate or impair any outstanding contract with bondholders. Section 15. Th'is ordinance, immediately on its final pas- sage, shall be. numbered and recorded in the officiat records of the City kept for that purpose, authenticated by the signatures of the Mayor and City Clerk and by the certifica'te of publication thereof, and shall be published .in a legal newspaper of general circulation in the City. The Council hereby, determines, pursuant' to Section 4.10 of the City Charter, that such publication shall be by publiCation of the titl'e and a summary of the subject matter hereof, together with a -9- statement that copies of the text are available for public inspection and acquisition in the office of the City Clerk. The form for such publication, shai1 be substantially as follows: · -10- (Form of Ordinance Summary for Publication) NOTICE IS HEREBY GIVEN that an ordinance entitled: AN ORDINANCE TO CONTRACT AN INDEBTEDNESS ON BEHALF OF T~E CITY OF ASPEN, COLOP~DO, AND UPON T~E CREDIT THEREOF, BY ISSUING THE GENERAL OBLIGATION BONDS OF THE CITY IN THE PRINCIPAL AMOUNT OF $6,300,000 FOR THE PURPOSE OF IMPROVING AND EXTENDING THE CITY'S W~t'~K SYSTEM, INCLUDING THE ACQUI- SITION OF WATER RIGHTS; PRESCRIBING THE FORM OF THE BONDS; PROVIDING FOR THE LE%-Y OF TAXES TO PAY THE SAME; PROVIDING OTHER DETAILS CONCERNING THE BONDS; RATIFYING ALL ACTION HERETOFORE TAKEN IN CONNECTION THEREWITH; AND DECLARING AN EMERGENCYi mas adopted on *first reading on'July 19, 198~* **second and final reading on . __, 1982'* by the City Council of the City of ASpen, Colorado. *The ordinance will be brought before the Council for public hearing and consideration of its final passage at the Council's meeting on __, 1982, at . :___.m., at the Aspen City Hall.* The following is a brief summary of the provisions of the ordinance: The preambles recite that the question of issuing general obligation water bonds was submitted to the voters (although'such submission is not required by the City's Charter) on May 5, 1981, and was approved by a majority of the electors voting thereon, and that the Council has now determined to issue the balance of the bonds so approved and to sell such bonds to Kirchner Moore & Company at a price of 97.8% of the principal amount thereof plus accrued iterest to the date of delivery. The ordinance ratifies consistent action by. the City and it~ officers; authorizes the issuance of the bonds; sets forth a schedule of principal maturities from 1983 to.1997 and inter- est rates ranging from 8.50% to 12.25%;.sets forth provisions for redemption of certain of the bonds prior to maturity at the City's option; provides for negotiability and execution of the bonds and prescribes a form for the bonds; provides for delivery of the bonds; provides for the levy of general ad valor~ taxes tO pay the bonds, except to the extent paid from net revenues of the City'.s water system or other available funds of the Cit~; covenagts that the City shall not make any investments'which would result in the loss of exemption from federal income taxation of interest on the bonds; authorizes and directs the City's officers.to effectuate the provisions of the ordinance; states that the ordinance is irrepealable until the bonds are paid; provides severabiltty and repealer clauses; directs the numbering, recordation, authentication and publication of the ordinance (including .the sum~ry); ~nd pro- vides the, t the ordinance is necessary for the preservation of the public property, health, peace and safety and shall be effective upon final ~assage. Copies of the ordinance are available for public inspection and acquisition at the office of the City Clerk during normal office hours. /s/ Kathry_n S. Koch City Clerk *Insert in publication after first reading **Insert in .publication after second reading o (End of Form of Ordinance Summary for Publication) -12- Section 16. In view of the urgent need for the Project and the favorable construction terms now available, and because of the extremely unstable conditions of the bond market, an eu}ergency is declared to exist, and'this ordinance is deckared to be'necessary for the preservation of the public property, health, peace and safety and shall take effeot immediately upon final passage? INTRODUCED on July 19, 1982. ~ayor (SEAL) Att est: '/"3 ADOPTED AND APPROVED on~//~, 1982. (SEAL) Attest: pity ~Cler k -13-